Holy fucking shit.
They've got me mad now. (inb4 umad bro)
Megaupload has a responsibility to remove any pirated content which is reported on their website, and their TOS clearly states that any pirated content is prohibited and can result in your account being suspended.
I question the statement in the article that "The conspirators [megaupload] allegedly paid users whom they specifically knew uploaded infringing content and publicised their links to users throughout the world".
Megaupload has one of those rewards services for people who get their files downloaded a lot, so it's natural that the pirates would get the rewards. It's part of the system, not a conspiracy.
Also what gives them the right to seize the Megaupload's stuff outside of the US? The site is based in Hong-Kong of all places! (Might this be something to do with that bullshit that says the US can do what the want with sites ending in .com?)